Top Stories for April 2, 2024:
1. Nippon Steel formalized its commitment to the United Steelworkers (USW) union to support its $14.1 billion bid to acquire United States Steel (NYSE:X).
The commitment includes $1.4 billion in capital spending and a guarantee of no layoffs through at least 2026, outlined in a letter to Sen. Bob Casey (D-PA) and Sen. John Fetterman (D-PA), who have opposed the deal.
Despite resistance from President Joe Biden and concerns about American ownership of U.S. Steel, Nippon Steel's new president is determined to proceed with the acquisition, promising to revitalize the American steel industry and maintain a cooperative relationship with USW workers.
2. Ivanhoe Electric (NYSE:IE) announced a significant copper find at the Hog Heaven Project in Montana, with Executive Chairman Robert Friedland highlighting the discovery's potential and commitment to continuous drilling.
The company reported positive drilling results, with recent assays showing high-grade, copper-rich zones. Drill hole HHD-014 revealed extensive copper, gold and silver mineralization, indicating a broad sulfide mineral presence and suggesting a promising porphyry system.
The results include a section of 82 meters with 0.63% copper and high-grade zones with up to 5.78% copper, showing potential for a significant discovery.
The mineralization, open in several directions, underscores ongoing efforts to locate the porphyry source driven by its Typhoon survey results.
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3. Iron ore prices headed higher due to optimism around China's industrial recovery, reflected in its rising manufacturing activity.
Singapore's 58% iron ore futures and Dalian exchange futures both climbed 3.8%, though iron ore CME futures declined 0.3%.
The surge was triggered by China's positive purchasing manager index (PMI) data, indicating a fifth consecutive month of manufacturing improvement driven by new domestic and overseas orders that boosted production and raw material purchases.
The March Caixin PMI index rose to 51.1, signaling accelerated expansion in supply, demand and increased business optimism.
4. Reliance, Inc. (NYSE:RS) acquired Mid-West Materials, an Ohio-based steel service center focusing on North American original equipment manufacturing, offering products like high strength hot-rolled, coated and cold-rolled steel.
MidWest's annual sales were around $87 million as of December 2023.
Transaction details weren't shared and the MidWest Materials management team will stay in place.
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